University’s endowment hits approximately $6.5 billion

CORRECTION APPENDED

It looks like the Columbia Blue finally knocked out the Harvard Crimson—albeit off the football field.

Columbia surpassed Harvard, the world’s wealthiest school, in gains this year, with an estimated endowment of approximately $6.5 billion as of June 30.

The University’s investment portfolio had an annualized return of 17.3 percent, according to a Columbia press release.

Columbia has bounced back from a negative return of 16.1 percent from the 2008-2009 fiscal year. Still, the University called last year’s drop a “relatively modest loss” considering the global financial crisis.

Meanwhile, Harvard averaged an annual return of 4.7 percent over the past five years, according to Bloomberg, a business news publication, while Columbia has had a 7.9 percent return in that time. Harvard had an annualized return of 11 percent this year.

“Over the past five years Columbia’s investment return had been among the top quartile in its peer group,” the University wrote in a statement.

University President Lee Bollinger credited the University’s financial success to a dedicated committee, particularly Vice President for Investments Nirmal Narvekar and Senior Executive Vice President Robert Kasdin.

“The committee is made up of extraordinary investors,” Bollinger said, adding that they had made “very austere decisions.”

Columbia’s losses last year, he pointed out, were significantly less than those of peer institutions—the aforementioned Harvard comes to mind—and Columbia has learned to maximize resources.

After having to make cuts due to tight finances, Bollinger entertained the idea of restoring missing resources.

“Some things that were jettisoned over the past few years may come back in a different form,” he said.

Given the good financial news, Bollinger said he was committed to continued salary increases for faculty and staff, as well as more funding for financial aid.

But the money won’t be going to Manhattanville—the expansion will continue to be funded by philanthropy.

While Columbia’s audited financial data for the 2010 year will not be completed and approved until next month, it’s hard to say no to announcing good news early—especially when Harvard’s on the line.

news@columbiaspectator.com

CORRECTION: An earlier version of this story stated that Harvard's investment return had been 4.7 percent over the past year, when in fact 4.7 percent is the average annualized return for the past five years. Spectator regrets the error.